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KUALA LUMPUR: Melati Ehsan Holdings Bhd plans to undertake a mixed development project on three parcels of land in Bandar Baru Selayang, Selangor, that it bought on Friday for RM77.74mil.

In a filing with Bursa Malaysia, the turnkey contractor and property developer said its unit Bayu Melati Sdn Bhd (BMSB) had signed a conditional agreement to buy the commercial development land, with a combined area of 37,078 sq m, from Aturan Utama Sdn Bhd.

The company said the purchase price would, however, be reduced to RM70mil in the event that the requisite planning approval for BMSB’s proposed commercial development on the land included a condition requiring it to build low cost and/or affordable homes, such as under the affordable housing scheme known as “Rumah SelangorKu”.

The land is currently vacant and is proposed to be developed into a mixed development. The development plans and gross development value is still not finalised as the project is still in the initial planning stage.

“The proposed acquisition is in line with the group’s intention to build up its land bank in strategic locations with high development value,” said Melati Ehsan.

“The proposed acquisition demonstrates the board’s initiative in pursuing growth and sustainability in its business.”

A STATE exco member has urged Bank Negara Malaysia to consider giving flexibility to first-time home buyers in repaying bank loan.

State Housing Committee chairman Jagdeep Singh Deo said banks should lower the amount of monthly instalment for themduring the first few years.

“The repayment amount can be increased subsequently after that, as the economy state of a person will become better eventually as time goes,” he told reporters at the Rifle Range flats where several blocks were being repainted on Friday.

Jagdeep Singh also proposed that the 10% deposit from the sale price of a property should either be reduced to 5% or removed entirely for first-time buyers.

He claimed the move would help first-time house buyers in Penang better compared to the First Home Deposit Funding Scheme (MyDeposit) which was launched on Wednesday.

The scheme is aimed at helping the lower income group with a household income of RM10,000 and below, with a contributionof 10% from the sale price, ormaximum of RM30,000 (whichever is lower), will be given to first-time buyers looking for homes priced below RM500,000.

“If this is the case, I don’t thinkit is possible for those who can’t even pay for the deposit to get the loans.

“To solve the problem, I hope that Bank Negara can make it mandatory for commercial banks to give a good level of interest for first-time home buyers.

“For instance, the 10% deposit should be reduced to 5% or taken away completely,” he said, adding that since MyDeposit was available, he hoped that Penangites would be given a fair chance in receiving the contribution.

On another matter, Jagdeep said the state had allocated RM1.235mil to repaint six of the nine blocks of Rifle Range flats in Air Itam.

He said three other blocks had been repainted before the lastgeneral election.

Bukit Bendera MP Zairil Khir Johari said he and Kebun Bunga assemblyman Cheah Kah Peng had previously pledged to get all the nine blocks of flats in Rifle Range repainted.

“When the painting beganfor block C and D, some of the building walls had spotted cracks.

“We resolved the problem with RM22,048 allocation from the state government,” he said.

PETALING JAYA: Sunway Bhd is not trying to take over the role of a bank, says Sarena Cheah regarding the group’s unique home ownership campaign.

Its managing director, property development division for Malaysia and Singapore, said this came as the group was offering up to 88% financing for home buyers under the Sunway Property Certainty Campaign, which included a guaranteed loan upon project completion, deferred payment and a voluntary exit plan.

“We are definitely not trying to be a bank because we are not in the business. We are lending you a helping hand rather than giving you a scheme,” she told StarBiz yesterday.

Under the newly-introduced scheme that runs until Sept 30 this year, buyers are given the option to apply for loans from commercial banks or from Sunway.

She said that the guaranteed loan was offered on a limited, first-come first-served basis for Sunway’s new residential launches.

Home buyers or investors can apply for the financial assistance where loans will be for a fixed tenure of 15 years, with a fixed interest rate.

It is part of the group’s plan to launch properties with a gross development value (GDV) of RM1.6bil in the Klang Valley, Iskandar Malaysia, Ipoh and Penang.

Currently, Sunway has a land bank of 3,304 acres, with a total GDV of RM47.7bil and a development period of up to 15 years.

Sunway is not the first property developer that has come up with such an arrangement, as Eco World Development Group Bhd has also planned to offer business grants to buyers of its commercial property in the Klang Valley, Penang and Iskandar Malaysia this year.

She explained that it was an alternative option if the buyers were unable to get financing from banks. “We are not giving it to everybody. It serves as a safety net if you can’t get a loan for whatever reason. At that point in time, when you can’t get a loan, that’s where we will come in,” she added.

However, she explained that buyers would likely prefer commercial loans because they were cheaper and better. “Ours is more expensive. So, we’re not here to compete with the banks,” she said, adding that money for the loans was from the financial arm under Sunway.

Cheah had mentioned previously that the group could afford to give out loans.

“It is actually very palatable for us overall. The balance sheet of the developer is very important.

“Today, the group is very comfortable and strong, and we know what to look out for and what we can or cannot do. We have had a financing arm in the group for many years,” she said.

Under the campaign, home buyers can pay an initial downpayment of as low as 3%, where buyers can pay the remaining amount after a period of 12 or 24 months.

“We also have put in place the option for purchasers to terminate their sale and purchase agreement if they lose their jobs,” she said.